Volume 9, Issue 4, April – 2024 International Journal of Innovative Science and Research Technology
ISSN No:-2456-2165
Counterfeit Product Detection using
Blockchain Technology
Sanket Mungase1; Vinayak Shinde2; Tejas Wakchaure3; Bhavana Chaudhari4
[1,2,3]
Student, Department of Information Technology, PES Modern College of Engineering, Pune
4
Professor, Department of Information Technology, PES Modern College of Engineering, Pune
Abstract:- A fraudulent practice where products that are
passed off as genuine, product counterfeiting represents
consumer fraud, which translates to financial losses.
Transparency in supply chain management also faces a
big challenge in terms of service repetition and lack of
coordination. Numerous remedies have been
implemented to battle counterfeiting, among them
Artificial Intelligence and RFID, among others, all of
which have significant issues such as incivility. This
project tackles the problem by applying blockchain
technology to improve counterfeit determination and
assure product items’ authenticity all over the source
chain. The scheme is built on blockchain encryption
techniques, which promote a decentralized service for
genuine authentication and duplication identification.
Through the usage of QR codes and barcodes found in
wireless technologies, counterfeit items are eradicated .
When scanning a product’s QR or barcode with a camera
scanner, the product’s unique code is linked to the
blockchain, and all its complete details are stored within
it. The database consists of multiple blocks, each one
representing a unique product. In case of scanning, if the
entered code matches with the database, a popup
notification will display on the customer’s device that this
product is genuine. Contrary to it, if there is no match
found, means it is a counterfeit product; then a popup
displays on the customer’s mobile, computer screen about
the fraud transaction of the manufacturer from which
points this scam is originating if the customer allows
doing this action using the application . This will enable
users to authenticate products independently without
relying on sellers.
Keywords:- Counterfeiting, Blockchain Technology, Supply
Chain Management, QR Codes, Product Authenticity, Fraud
Detection, RFID Tags, Decentralization, Data Security.
I. INTRODUCTION
Counterfeiting is when a product is sold masquerading
as another product. Consumer fraud itself, is generally
defined as deceptive business practices that cause financial
and other harm to consumers. According to a report by the
Association of Authentication Solution Providers, the Indian
economy costs Rs 1 trillion annually. Fraud is expected to
increase by 20% in 2018-20.[1] Counterfeit goods include
fake plants and trees, handbags, clothing, cosmetics and
electronics. It has negative effects not only on the economy,
but also on society. For example, diseased plants and trees
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can be sold without the user’s knowledge, poor cosmetic
products can touch the skin and cause skin infections and
burns, counterfeit electronics can prevent machines from
doing it work poorly and have caused bad conditions and
accidents poor quality clothing, shoes can cause discomfort
when worn . Therefore, it is important to find a solution to
sell counterfeit goods in this regard. Another consequence of
counterfeiting is damage to the company’s reputation. Since
many consumers are clueless that what they are wearing is a
knock-off, they will blame the real company if the knock-off
product doesn’t work properly, disconnects quickly, or fails
to meet their expectations Consumers ask for a refund they,
in the form of a refund or new or other product, were
applying directly to a legal entity. Most affected businesses
are probably in a situation where they are dealing with an
unhappy customer who complains about the poor quality of
the product, and the customer service representative is
unaware that the product in question is counterfeit.
A fully functional blockchain system is proposed to
eliminate this practice by ensuring that counterfeit goods or
products are detected and traced throughout the supply chain
Companies should pay minimum fees on marketing and they
don’t have to worry about the possibility of spurious
distribution to their end users. The biggest problems and
biggest losses are in the sense of raw material damage and
loss of money for the original manufacturers due to
counterfeiters. Functional blockchain technology can be used
to determine the original state of an object. A blockchain is a
chain system of encrypted data that makes it difficult or
impossible to change or crack the system. Once a resource is
stored on the network, a hash code is generated for that
resource and it is possible to maintain all transaction records
of the resource as well as its current owner as a chain created
for that resource transaction. This will store all transaction
records as blocks in the blockchain. In the proposed system,
we provide a QR code or barcode designed for a specific
product by the manufacturer with all the details of the
product. The end customer can scan that QR code to get all
the information about that product. By scanning the QR code
or barcode on the product, the user can determine whether the
product is genuine or fake.
II. MOTIVATION
The motivation behind implementing a blockchain-
based fake product detection system lies in safeguarding
consumer safety, reducing economic losses, preserving brand
reputation, and ensuring compliance with regulations in an
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increasingly globalized marketplace. By leveraging the
transparency and tamper-resistant properties of blockchain
technology, this project aims to instill trust, protect public
health, and promote responsible business practices while
addressing environmental concerns, enhancing data security,
and embracing innovation, ultimately contributing to a safer
and more reliable marketplace for consumers and businesses
alike.
III. LITERATURE SURVEY
The literature survey explores the sources of
counterfeits and social impact, and discusses detection
systems such as artificial intelligence, QR codes, machine
learning, blockchain, etc. Shaik suggests public and private
keys are not used as QR codes, with cryptographic
functionality to be defined app for scanning objects. Shaik's
proposal to use QR codes with cryptographic functionality
highlights a step towards secure consumer products [2].
Benatia and Baudry et al. Present the traceability-CPS
framework for supply chain management, enhancing product
safety and quality through data analytics. Benatia and
Baudry’s traceability-CPS architecture provides a holistic
approach to supply chain management, with an emphasis on
data analytics to enhance product security. [3]. Khalil and
Dos, among others. RFID-based systems are recommended to
reduce counterfeiting, enabling product legitimacy to be
verified in-store, Khalil and Doss recommend supporting
RFID-based systems, which provide real-time verification of
product legitimacy for counterfeit transactions Tran and
Hong's anti-counterfeiting protocol enables them to stop
denial-of -service attack prevention, thereby making security
detection systems more enhanced. [4]. Tran and Hong
proposed an anti-counterfeiting system that is impervious to
DOS attacks, Khalil and Doss recommend supporting RFID-
based systems, which provide real-time verification of
product legitimacy for counterfeit transactions Tran and
Hong's anti-counterfeiting protocol enables them to stop
denial-of -service attack prevention, thereby making security
detection systems more enhanced.. Habib, Sardar and others.
Recommendations for integrating blockchain into supply
chain management to address transaction issues, Habib and
Sardar’s integration of blockchain in supply chain
management solves transaction challenges, promising
increased transparency and security. [5]. David and Wu et al.
presents an AI framework for lie detection using training
samples and detection algorithms, To detect lies,
David and Wu used AI. Chen and Shi's blockchain-
based framework for supply chain quality intelligence uses
smart contracts to execute quality control measures,
enhancing supply chain efficiency [6]. Chen and Shi et al.
propose a blockchain-based system for better supply chain
intelligence, using RFID technology and smart contracts[7].
Toyoda , Kentaroh and Mathiopoulos , P. Takis et al.
Introduce a QR code-based system to validate products and
capture transaction history. The blockchain system ensures
data integrity and user control, with Ethereum acting as the
backend processing system, Toyoda, Kentaroh and
Mathiopoulos, P. Takis proposes a QR code-based system for
consumer goods trust, facilitating transparency and follow-
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through. Furthermore, the discussion on Ethereum as a
blockchain operating system highlights the role it plays in
enabling digital transactions and services[8]. Abhijeet and
Andrew et al. They examine the phenomenon of
counterfeiting in the global supply chain and highlight
various methods of counterfeiting by companies. Limitations
of existing systems include QR code copying and RFID tag
cloning, as well as resource-intensive AI and machine
learning. Buyers, sellers and retailers should be empowered
to verify products. In a comprehensive study, Abhijeet
Andrew et al. discusses findings on counterfeiting in the
global supply chain. Counterfeiting is on the rise, especially
in areas such as low-cost raw materials and
pharmaceuticals[11]. Strategies used by companies to reduce
this issue include avoidance, prevention based on past
experiences, and waste. Challenges remain in counterfeit
detection due to the presence of forged certificates.
Limitations are specified for existing systems. QR codes,
although often used by companies for authentication
purposes, can be copied and used for counterfeit goods.
Similarly, low-cost RFID tags in RFID-based systems are
susceptible to cloning, making the method inefficient.
Artificial Intelligence and Machine Learning applications,
although promising, face obstacles such as high
computational requirements of Convolutional Neural
Networks (CNN) and unpredictability of tag reuse attacks
A key feature lacking in current policies is the ability to
verify products for customers, suppliers and retailers. This
gap highlights the need for innovative solutions that not only
detect counterfeiting but also provide stakeholders with
options for authentication throughout the supply chain
emphasize. Furthermore, the study highlights the potential of
blockchain technology to ensure transparency and data
integrity, emphasizing the importance of its application to
data collection and use plant. Continuing the research, the
literature examines possible solutions and progress in the
fight against counterfeiting.
Overall, the literature survey provides a comprehensive
overview of the challenges posed by counterfeiting and the
diverse array of solutions proposed by researchers and
practitioners. By addressing limitations in existing systems
and leveraging emerging technologies, the fight against
counterfeiting continues to evolve towards greater
transparency, security, and consumer protection.
IV. WORKING OF BLOCKCHAIN
The main objective of blockchain is to make the stored
data irrevocable from the system. The approximately five
steps that shows how a blockchain works are:
 The user should register and authenticated prior to
inputting data in the transaction blockchain.
 Creation of a new block and storage of transaction.
 The copy of newly created block is sent to every node of
the computer.
 By the use of different chaining techniques, the
acceptance of transaction is done by the authorised nodes
which is in decentralized manner, in forward the
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transaction information is stored in already existing
blocks.
Fig 1. Working of a Blockchain Network
V. METHODOLOGY
A. Proposed System
To address the increasing prevalence of counterfeit
goods globally, we propose the development of a
comprehensive application system. This system will focus
on storing the product's supply chain information and
preserving ownership histories. By providing buyers with
access to detailed product information, they can make
informed decisions about the legitimacy of the item they are
purchasing. Our approach involves the utilization of QR
codes to validate products and add relevant product
information. QR codes offer a convenient and efficient
means of accessing product details, enhancing transparency
in the purchasing process. Additionally, we will implement
mechanisms to safeguard product data from unauthorized
modifications. Blockchain technology emerges as a viable
solution in this regard, offering tamper-resistant data storage
capabilities. In this suggested system, the integration of
blockchain and QR codes plays a pivotal role in identifying
counterfeit products. Blockchain ensures the integrity and
immutability of product data, while QR codes facilitate easy
access to this information for consumers. Together, these
technologies create a robust framework for combating the
proliferation of counterfeit goods.
Furthermore, the application system will incorporate
features to streamline the verification process for consumers,
enabling them to quickly authenticate products and ascertain
their authenticity. By leveraging blockchain and QR codes,
we aim to instill greater confidence in consumers while
simultaneously deterring counterfeiters from engaging in
fraudulent activities.
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 Later the updates are distributed throughout the network.
Overall, our proposed system represents a proactive
approach to addressing the challenges posed by counterfeit
goods. Through the seamless integration of blockchain and
QR codes, we can establish a reliable mechanism for
authenticating products and safeguarding consumer
interests.
B. System Model
In the system model, the flow begins with the user
visiting a web page and interacting with the blockchain
through the web3.js library. Web3.js is a JavaScript library
that allows you to interact with the Ethereum blockchain. It
acts as a bridge between the frontend web application and
the blockchain network.
When a user initiates a transaction or interaction with
smart contracts on the web, the request is sent to Metamask ,
which acts as a Web3 WebProvider. Metamask securely
manages the user’s Ethereum account and private key,
enabling them to sign transactions and communicate with
smart contracts securely.
Finally, MetaMask forwards the transaction request to
the Ethereum blockchain, where it is processed by smart
contracts. A transaction results in changes to the blockchain
state, which are recorded and verified by participants in the
network.
Overall, this management system ensures smooth data
and transactions between the web application, Metamask,
and the Ethereum blockchain, enabling secure and
transparent transactions.
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Fig 2 System Model
C. Tools Requirement
 Ganache
This software package enables you to create a
personalized Ethereum blockchain community. It provides
the necessary tools to use and interact with blockchain-based
smart contracts. Ganache allows Ethereum blockchain
simulation, facilitating seamless transactions and smart
contracts tailored to specific applications.
 Metamask
As a web browser extension, Metamask acts as a
bridge between the browser and the Ethereum blockchain. It
acts as a secure Ethereum blockchain wallet for users,
allowing them to manage their Ethereum accounts and
transact directly from their web browser Metamask
improves the user experience with easy and secure
transactions by enabling them to interact with blockchain
applications.
 Truffle Suite
Truffle is a comprehensive framework that simplifies
the development, testing, and deployment of blockchain-
based applications. It offers a suite of tools for creating and
managing smart contracts, as well as for automating various
aspects of the development process. Truffle's robust features
streamline the development workflow, making it easier for
developers to build and deploy decentralized applications
(DApps) on the Ethereum blockchain.
 Node.js
Node.js is a runtime environment that allows
developers to create server-side applications using
JavaScript. For blockchain development, Node.js is often
used to create front-end web pages for websites or DApps.
Its asynchronous and event-driven architecture makes it
ideally suited for handling concurrent transactions and
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interacts with the blockchain network via the JavaScript
library web3.js for Ethereum development.
 Solidity
Solidity is a high-level programming language
specifically designed for writing smart contracts on
blockchain platforms, par
D. Algorithm
The following algorithms can be used to deal with
counterfeit goods using blockchain technology.
 Recording product information: The first step is to
record detailed product information including
information and transaction history on the blockchain.
Each product is assigned a unique identifier for easy
tracking throughout the supply chain.
 Supply Chain Verification: It is important to verify the
entire supply chain. This process includes authentication
of raw materials, verification of manufacturing
processes, and documentation of distribution channels on
the blockchain.
 Smart Contract Implementation: Smart contracts are
implemented on the blockchain to ensure that every
transaction in the supply chain is authentic and
authorized by the relevant stakeholders This reduces
risks such as double spending and under unauthorized
uses.
 Verification by stakeholders: All stakeholders involved
in the supply chain must have access to the blockchain to
verify the authenticity of the product at every stage. This
can be done by looking for a unique QR code or barcode
associated with blockchain records.
 Verification by Consumers: Consumers also have the
ability to verify the authenticity of products by scanning
the product’s unique code and accessing blockchain
records. This enables consumers to avoid counterfeit
purchases, increasing consumer safety.
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 Alert generation: Any suspicious activity or attempts to
modify blockchain records should trigger alerts for
relevant parts of the supply chain. This proactive
approach helps prevent fraudulent activities and ensures
supply chain integrity.
By implementing this system, both manufacturers and
consumers can ensure product authenticity, thus reducing
the risk of buying counterfeit goods.
E. System Architecture
Overall, the whole system uses QR code as a base to
detect fake products. The verification can be done using a
smartphone or a scanner where each product will have its
separate QR code which then will be linked to smart
contracts. The company, after verifying the ID and
corresponding registration system, gets to add a machine-
generated QR code to add product information. This ensures
that only authorized entities can support the system,
maintaining the integrity and accuracy of false
identification.
In the blocks of the blockchain under the QR code, the
product details would be stored such as brand name, product
name, manufacturing time, price, quality, size, and
manufacturer information. Each retail block will be
associated with a unique QR code, ensuring it can’t be
reused for different products from the manufacturer. The use
of returned QR codes increases the security and reliability of
the tracking and identification process. These reissued QR
codes provide complete product information, keep
customers connected and increase productivity. Before a
product’s QR or barcode can be scanned, customers are
required to register and log into the system. This ensures
Fig 3.System Architecture of Proposed System
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accountability and enables the system to monitor user
interactions, contributing to the overall security and integrity
of the product authentication process.
If the user is successful, the unique code checked by
the customer will be compared with the code generated by
the manufacturer, which is stored in smart contracts blocks
and if the codes match, the user will receive a notification
stating that the item is the beginning. In addition, the user
will be provided with all relevant product information and
authentic documentation obtained from the database. In the
event of a discrepancy between the codes, the user will
immediately be notified that the product is counterfeit. This
information is critical to preventing counterfeit purchases,
which can result in serious health or financial consequences.
By detecting counterfeit products early, consumers can
make informed purchasing decisions and minimize potential
risks.
Indeed, manufacturers benefit from the detection of
counterfeits. If an item is found to be counterfeit, the system
can record the status of the person with the appropriate
authorization. A warning can then be sent to the
manufacturer, enabling further legal proceedings against
distributors, stores and illegal manufacturers. This not only
increases trust between customers and businesses but also
increases customer satisfaction. Furthermore, it saves the
manufacturer from wasting valuable time and resources in
dealing with reputational and business losses caused by
counterfeit products. Legal action against illegal distributors,
retailers and manufacturers protects the integrity of the
supply chain, and maintains consumer confidence and
satisfaction.
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F. Security Algorithm
The algorithm used in the blockchain to generate a
consistent hash of 256 bits is an integral part of encryption
technology. This process requires several steps to ensure
data integrity and security.
Initially, the algorithm uses an initialization vector (IV)
of 256 bits. The input data, which can be very large, is
divided into 512 bit blocks. Since an input size cannot
always be an exact number of 512 bits, padding is applied to
the rest of the input. The input is combined with a 10-bit
sequence before proceeding to this padding.[13]
Once the input is appropriately padded and segmented,
each block is processed with a compression function. The
output, a 256-bit hash, is then combined with the next 512-
bit input block. This process continues iteratively until the
last block (segment n) is reached.
At this point, the last block compresses with a
compression function, producing a final 256-bit output. This
output is a hash of the input data.
It is important to check the specifications for message
length and digestion length. The clear text must be less than
264 bits long to keep randomness random in the digester. In
addition, the hash digest length for the SHA-256 algorithm
must be exactly 256 bits to ensure accuracy and
reliability.[14]
Also, hash functions like SHA-256 are immutable by
design. This means that it is not computationally feasible to
obtain the original simple information from a hash digest, or
to reconstruct the original hash digest from a simple digest
This transformation is a key property of cryptographic hash
implementations and contributes to its efficiency in
protecting data.[15]
G. Truffle Framework
Truffle is a comprehensive development environment,
testing framework, and asset pipeline designed for
blockchain development utilizing the Ethereum Virtual
Machine (EVM). It provides support for developers
throughout the entire lifecycle of their projects, whether they
are building on Ethereum, Hyperledger, Quorum, or other
compatible platforms. Complemented by Ganache, a
personal blockchain, and Drizzle, a front-end dApp
development kit, the Truffle suite offers a complete solution
for dApp development.
Ganache serves as a personal blockchain platform that
enables developers to create smart contracts, decentralized
applications (dApps), and test software. It is available as
both a desktop application and a command-line tool,
offering compatibility with Windows, Mac, and Linux
operating systems.
Drizzle is a specialized front-end development library
built around the Redux JavaScript library. It is designed to
automatically synchronize contract data, transaction data,
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and other relevant information, providing a seamless
integration with blockchain applications.
H. Firebase Authentication
Firebase Authentication provides all the server-side
features to authenticate the user. With the SDK, Firebase
Authentication becomes easier. This makes the API easier to
use. Firebase Authentication provides all the server-side
features to authenticate the user. With the SDK, Firebase
Authentication becomes easier. This makes the API easier to
use. Firebase Authentication also provides a number of user
interface libraries that enable screens for us when typing.
Firebase authentication supports authentication using
password, phone number, popular identity providers like
Google, Facebook, Twitter etc. [2] User authentication is
one of the most important requirements for Android apps
nowadays. Getting users to agree is important, more difficult
if we have to write all this code ourselves. This is very easy
with the help of Firebase.
 By securely authenticating our users, it provides a
customized experience based on their interests and
preferences.
 We can make sure that many devices have no problem
accessing their private data while using our app.
 Firebase Authentication provides all the server-side
features to authenticate the user. With the SDK, Firebase
Authentication becomes easier. This makes the API
easier to use.
 Firebase Authentication also provides a user interface
library that enables screens for us while logging in.
 Firebase authentication supports authentication by
password, phone number, popular identity providers like
Google, Facebook, Twitter etc.
 We can provide users access to our app using
FirebaseUI.
 Manages a continuous UI flow for user login with email
addresses and passwords, phone numbers, and popular
providers, including Google Sign
VI. FUTURE WORK
Future work of the system may be evidence of
regulatory weaknesses that may indirectly increase customer
confidence due to distributed applications. It can be difficult
to include all details of products manufactured at the
manufacturer’s side so instead of manually adding product
information, data can be extracted via the company’s API to
increase productivity and let the manufacturer good friendly.
It is more efficient to print the QR code and scan and
retrieve the information so that it can be used in order to
extract a secure graphic QR code which if when the QR
code is photocopied will lose the information due to inking.
These image recognition images or encrypted images are
digital images that are formatted so that they lose
information when copied and are printed irreversibly. Also
to create a Price negotiation chatbot which will directly deal
with consumers in order to negotiate the price of the product
that the consumer is ready to purchase.
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VII. CONCLUSION [7]. S.Chen, R.Shi, Z.Ren, J.Yan, Y.Shi, J.Zhang, A

A fully functional application can effectively reduce
anti-counterfeit counterfeiting of branded products and
provide companies with limited financial resources and an
easy way to give consumers confidence and assurance that
they won’t buy counterfeit unconventional objects. Overall,
this blockchain technology-based application could emerge
as a lifesaver for companies and enable new systems of
trading, marking and procurement that are secure and user-
friendly. The total cost of running on the Ethereum public
chain is directly related to the soft code of the distributed
applications. Future operations of the system may be
evidence of regulatory weaknesses that may indirectly
increase consumer confidence due to distributed
applications. It can be difficult to include all details of
products manufactured at the manufacturer’s side so instead
of manually adding product information, the data can be
extracted using the company’s API to increase efficiency
and make it friendlier. The QR code is not hack able, but the
information is copied or known to give the same QR code
and the printing of the QR code works well to scan and
retrieve the information so to tackle this, secure graphic QR
code can be released as the QR code one day no is
photocopied and then information disappears due to ink
smearing will. These visual images or encrypted images are
digital images that are formatted so that information is
irreversibly lost when copied and printed. The system
should be able to show the customer the same products
when the product is counterfeit but show the original from
different price points to make the system usable, efficient
and effective.
blockchain-based supply chain quality management
framework, in 2017 IEEE 14th International Con-
ference on e-Business Engineering (ICEBE)
(IEEE,2017), pp.172–176
[8]. K.Toyoda, P.T.Mathiopoulos, I.Sasase, T.Ohtsuki,
IEEE access 5, 17465 (2017)
[9]. M.Nakasumi, Information sharing for supply chain
management based on blockchain technology, in 2017
IEEE 19th conference on business informatics (CBI)
(IEEE,2017), Vol.1,pp.140–149
[10]. G.Woodetal., Ethereum Project Yellow Paper 151, 1
(2014)
[11]. A.Ghadge, A.Duck, M.Er, N.Cald-well, Supply Chain
Forum: An In-ternational Journal 22, 87 (2021),
https://doi.org/10.1080/16258312.2021.1908844
[12]. I.Singhal, International Journal for Research in Ap-
plied Science and Engineering Technology 9, 291
(2021)
[13]. https://aws.amazon.com/what-is/blockchain/?
[14]. https://ijarcce.com/wpcontent/uploads/2022/05/IJARC
CE.2022.11578.pdf?
[15]. https://citeseerx.ist.psu.edu/document?repid=rep1&typ
e=pdf&doi=efa5995829c4c989f4ca78ff07c2ad9c1532
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